South Korean Stocks Fall Amid US-Iran Tensions
South Korean markets declined over two days as rising oil prices and US Treasury yields sparked inflation fears following US rejection of an Iranian proposal.
The South Korean KOSPI index experienced a two-day decline starting September 28, 2026, ending a four-day winning streak. The index first fell 2.70 percent to 6,889.74 on Monday, followed by a further 0.19 percent drop to 6,876.43 on Tuesday. These losses mirrored retreats in the S&P 500, Dow Jones Industrial Average, and Nasdaq composite.
Market volatility was driven by climbing US Treasury yields—the highest since June 2007—and rising crude oil prices. These trends were fueled by geopolitical tensions after Donald Trump rejected a conditional proposal from Iran to reopen the Strait of Hormuz. Reports also indicate the US president informed aides of his intention to resume bombing Iran after the November midterm elections.
Investors expressed concern that higher energy costs would sustain inflation and keep interest rates elevated ahead of the next Federal Reserve meeting. While chipmakers Samsung Electronics and SK hynix saw slight gains on Tuesday, other major firms suffered, with LG Energy Solution falling 2.57 percent and Hyundai Motor Company shedding 1.4 percent.
